Property and Equipment, Net

12 Months Ended

Aug. 31, 2014

Property, Plant and Equipment [Abstract]

Property and equipment, net consist of the following as of August 31:



($ in thousands)	2014			2013
Land	$	30,540		$	30,562
Buildings	62,970			62,852
Furniture and equipment	388,397			428,441
Leasehold improvements (includes tenant improvement allowances)	357,645			353,548
Software	139,376			128,746
Internally developed software	139,325			121,137
Construction in progress	40,502			52,097
Gross property and equipment	1,158,755			1,177,383
Accumulated depreciation and amortization	(723,022		)	(704,769		)
Property and equipment, net	$	435,733		$	472,614

The following amounts, which are included in the above table, represent capital leases as of August 31:



($ in thousands)	2014			2013
Buildings and land	$	4,510		$	5,307
Furniture and equipment	48,024			53,826
Software	14,264			14,264
Accumulated depreciation and amortization	(42,401		)	(33,301		)
Capital lease assets, net	$	24,397		$	40,096

Depreciation expense was $135.8 million, $196.7 million and $158.0 million for fiscal years 2014, 2013 and 2012, respectively. For fiscal years 2014 and 2013, depreciation expense includes $7.6 million and $50.1 million, respectively, of accelerated depreciation associated with our restructuring activities that is included in restructuring and other charges on our Consolidated Statements of Income. The remaining depreciation expense in fiscal year 2014 and 2013 and all of the depreciation expense in fiscal year 2012 is included in depreciation and amortization on our Consolidated Statements of Income. Depreciation expense also includes internally developed software depreciation of $20.1 million, $12.1 million and $10.1 million for fiscal years 2014, 2013 and 2012, respectively.

During fiscal year 2013, we recorded $20.4 million of fixed asset impairment charges, which includes $12.2 million resulting from our restructuring activities. Refer to Note 2, Restructuring and Other Charges.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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